Due to unawareness, many taxpayers commit mistakes in GSTR 3B and GSTR 1 while filing the GST Return. In this article, we will discuss “how to correct mistakes in GSTR 3B”. The government has proposed several amendments to the GST law to make it more business-friendly and allow tax credits that will help lower the burden. Several genuine business transactions will now be eligible for the input tax credit, which was not eligible till now. In this article, we have discussed the basic type of mistakes in GSTR 3B and their appropriate solutions.
Type of Mistakes in GSTR 3B and their appropriate solution:
- Liability has been under-reported, and the return has been filed:
When you have mistakenly filed your tax liability and have under-reported it, there can be some condition either a taxpayer failed to report an invoice or some amount ( liability) in the GSTR 1 and GSTR 3B in a particular month or quarter, then that liability has to be paid through GSTR 3B in the subsequent month/quarter with appropriate interest amount as stated before.
Solution: – The liability needs to be added in the return of the subsequent month and you also must pay the appropriate interest amount as stated before.
- Liability has been over-reported, and failure to file a return
In such a scenario, if a taxpayer over-reported a bill or reported a bill twice then in form GSTR 3B, the over-reported sales amount needs to be deducted from the total sales amount (if possible) from outward supplies and inward supplies on reverse charge.
Solution: – When the taxpayer’s tax liability has been over-reported mistakenly, the taxpayer can adjust their over-reported amount in the next month/quarter. It may be adjusted using the modifications in Form GSTR-1.
- Incorrect reporting of Liability
In this case when the taxpayer’s liability has been wrongly/incorrect reported, a taxpayer’s unreported liability may be added to the upcoming month/quarter’s return, along with the applicable interest.
Solution: – Taxpayers must file amendments by filling out Table 9 of the following month’s / quarter’s Form GSTR-1.
- under-reported ITC (Input Tax Credit):
If Taxpayer has mistakenly not considered a few of his purchases in a month then he can do so in the subsequent month’s purchases and along with it, the ITC can be availed.
Solution: – If a taxpayer has under-reported his ITC for a month/quarter and wants to claim it, he/she can avail it in the return of the subsequent month/quarter. Only GSTR 3B’s needs to be changed and in that the required ITC can be added, in the subsequent month. No action is required in GSTR 1.
- Over reporting of ITC after filing the GSTR-3B
In this scenario, when the taxpayer has been over-claimed the Input Tax Credit and is also used the same then, the taxpayer needs to adjust or pay the same along with the appropriate interest duly in GSTR 3B in the subsequent month/quarter.
Solution: – in this situation, the taxpayer must pay (in cash) /reverse any over-reported input tax credit with interest in the subsequent month’s /quarter’s return. No action is required in GSTR 1.
In case you are confused about GST as a business owner, feel free to consult the GST experts at K M GATECHA & CO LLP. You can get comprehensive assistance and the best services on GST Registration and GST Return Filing online. You can also clear your doubts by simply calling us at +91 8000057972 or emailing us the same at [email protected].
Frequently Asked Questions
It is not possible to revise GSTR-3B once filed. But Government has now allowed to ‘Reset GSTR 3B’ through which the status of ‘Submitted’ will be changed to ‘Yet to be Filed’, and all the details filled in the return will be available for editing.
When the taxpayer failed to report an invoice or some amount (liability) in the GSTR 1 and GSTR 3B in a particular month or quarter, then that liability has to be paid through GSTR 3B in the subsequent month/quarter with appropriate interest amount as stated before.
If a taxpayer has under-reported his ITC for a month/quarter and wants to claim it, he/she can avail it in the return of the subsequent month/quarter. Only GSTR 3B’s needs to be changed and in that the required ITC can be added, in the subsequent month.